Many home buyers love the idea of a shiny new home where they have chosen the floor plan and all the finishes. With a shortage of homes on the market in the greater Twin Cities area, buyers are finding few choices in existing homes and are turning to new construction as an option to find their dream home. Becky and I thought it would be interesting to compare prices for existing homes and new construction. Turns out, there is a very large difference in price (see graph).
The average sales price for a new home in Hudson is $275,070. That’s up 17.3% in the past year! Home builders are still recovering from the significant drops in prices in 2011. The market for existing homes is quite different, with an average price increase of 5% in the past year to $228,605.
Now, the first thought one might have is that they are building bigger homes nowadays. But, if you look at the second graph, you’ll see the difference in average price per square foot. $125 per square foot for new construction versus $99 for an existing home.
There is tremendous value in buying a pre-owned home. For many, they prefer a home with the character that time brings, not to mention mature trees and the larger yards that most older neighborhoods provide.
Becky and I are experts in the Hudson area real estate market and would be happy to talk with you about your home buying and selling options. With a degree in home construction, I am uniquely qualified to help you navigate the maze of new construction options or help you determine the scope of work that may be needed should you wish to buy or sell a pre-owned home. We are both licensed in both Minnesota and Wisconsin.
John Durham – 651-231-2191
Becky Durham – 651-231-2192
Housing statistics and information provided by John and Becky Durham are based on data available as of May 15, 2013. Data comes from the Regional Multiple Listing Service of Minnesota, Inc. Data deemed reliable but not guaranteed. Powered by 10K Research and Marketing.